FY21 earnings (EBITDA) guidance by Superloop was in-line with Morgans expectations, when “new investment for growth” is excluded.
The company explained they are investing an additional -$3m during FY21 in “new enterprise teams and scaling residential NBN”.
Core earnings are expected by the broker to nearly double in FY21.
Acquiring more customers can potentially create significant value, assesses the analyst, who warns the company has “impressive” networks that are around 80% empty.
The Add rating is unchanged and the target decreased to $1.27 from $1.30.
Sector: Telecommunication Services.
Target price is $1.30.Current Price is $1.00. Difference: $0.30 – (brackets indicate current price is over target). If SLC meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).